By KELIN DILLON
Amid the approval of Mexico’s controversial energy reform, the companies the initiative is based around, Mexico’s state-owned Petróleos Mexicanos (Pemex) and Federal Electricity Commission (CFE), each reportedly lost billions of pesos in 2020.
According to Pemex’s 2020 financial report, the company lost 480.9 billion pesos last financial year, a staggering 38.2 percent increase in loss from 2019, when it lost 347.9 billion pesos.
However, Pemex did manage to increase oil production by 4,000 barrels per day from the year previous.
Still, following the losses, Pemex’s owed debt now totals to 2.24 trillion pesos, up 11 percent from last year.
The CFE reportedly lost 78.9 billion pesos in 2020, compared to a net profit in 2019 of 25.6 billion pesos, over a 100 billion peso change.
Both companies, however, saw an uptick in profit during the final quarter of 2020.
Officials say the losses come as side effects of the worldwide covid-19 pandemic that has slowed the globe’s economy in a multitude of ways, including a peso-to-U.S. dollar devaluation.
The operating losses come as a concern to experts, considering the country’s controversial new energy legislation prioritizes the CFE and Pemex over foreign investment. With the government-owned companies operating at such a deficit, worries have arisen over Pemex and the CFE’s capability of effectively leading Mexico’s energy sector.
The proposed reform, which is expected to pass the Mexican Senate on Monday, March 1, has also come under criticism for potentially discouraging foreign investment in Mexico, prioritizing less-environmentally friendly forms of energy and for violating treaties with vital trade partners to Mexico. like the United States, Canada and Europe.
…March 1, 2021